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The following table shows the number of employees at Diamond Corporation over the past 16 years. ...

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The following table shows the number of employees at Diamond Corporation over the past 16 years. ...

The following table shows the number of employees at Diamond Corporation over the past 16 years.

Which one of the following statements is true for the hypothesis test for positive autocorrelation using α = 0.05?

▸ Because the Durbin-Watson statistic is less than the lower critical value, we fail to reject the null hypothesis and conclude that positive autocorrelation is present in the time series.

▸ Because the Durbin-Watson statistic is less than the lower critical value, we reject the null hypothesis and conclude that positive autocorrelation is not present in the time series.

▸ Because the Durbin-Watson statistic is greater than the upper critical value, we fail to reject the null hypothesis and conclude that no positive autocorrelation is present in the time series.

▸ Because the Durbin-Watson statistic is greater than the lower critical value, we reject the null hypothesis and conclude that positive autocorrelation is present in the time series.

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Business Statistics

Edition: 2^nd

Author: Donnelly

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